A sequence of 3 positive daily performances ended yesterday as profit taking developed at overbought extremes.
The lows were not held and the important 13 day moving average was untested but Asian selling indicates that the reaction is incomplete and the average has held the downside for almost a month and, statistically, it is rare to see much longer without a serious test.
Therefore we're looking for what is assessed as a temporary setback to deepen with the 13 day avg the…Continue
A 4th negative weekly performance in a row was posted last week. Signals for sentiment are overstretched but there are 3 main reasons why we still favour the downside;
In addition EURCHF is traded at 2 month lows with last week's decline the most negative since February.
Monday's decline based at a Marabuzo line created on November 26 and the key 13-day moving average. These points proved their relevance yesterday, acting as a platform for a return of investor demand.
Although signals for sentiment can only be strong on a move beyond last week's high, we currently look for setbacks to attract buyers and so for the underlying positive tone to persist targeting a move to 1.3622 and 1.3645…
Initial selling was extremely limited last week and found fresh buyers at a Marabuzo line created Nov 21st. The resumption of demand yielded a 4th positive week in succession and the highest levels traded this year.
Signals for sentiment are at oversold extremes and so potential is clear for profit taking but with both the weekly and daily Keltner channels bullish and momentum positive, we look for setbacks to be temporary.
Potential targets this week include 1.6417 and…Continue